Back
HIGH COURT OF GUJARAT
BHARGAV D. KARIA, D.N. RAY
Jambuwala Commodities Private Limited – Appellant
Versus
Income Tax Officer – Respondent
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms.Vaibhavi K. Parikh for the petitioner and learned Senior Standing Counsel Mr.Varun Patel for the respondents.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule for the respondents. With the consent of learned advocates for the respective parties, the matter is taken up for final hearing, as the issue involved is very short.
3. By these petitions, the petitioner had challenged the impugned notices dated 31st March, 2021 issued under Section 148 of the Income Tax Act, 1961 (for short “the Act”) for the Assessment Years 2013-14 and 2014-15 on the ground that the reasons recorded for reopening for both the Assessment Years are vague and incorrect.
4. For sake of convenience, Special Civil Application No.2488 of 2022 is treated as a lead matter for recording of the facts.
4.1 The petitioner - Company entered into various loan transactions with one M/s. Affluence Commodities Pvt. Ltd. during the previous year relevant to Assessment Year 2013-14 and earned interest income of Rs.1,99,000/-. The aggregate amount of transactions be
The necessity for clear and specific reasons in reopening assessments under the Income Tax Act is paramount; vague reasons do not justify such actions.
Reopening of assessment under the Income Tax Act requires tangible new material; mere change of opinion is insufficient.
The Assessing Officer must independently verify information before reopening assessments; reliance on third-party information without application of mind invalidates the reopening process.
The Court should be guided by the reasons recorded for the reassessment and not by the reasons or explanation given by the Assessing Officer at a later stage in respect of the notice of reassessment.....
It is a settled position of law that reopening of case under Section 147 of the act, after expiry of 4 years, cannot be justified unless the income chargeable to tax has escaped assessment by reason ....
It is a settled position of law that reopening of case under Section 147 of the act, after expiry of 4 years, cannot be justified unless the income chargeable to tax has escaped assessment by reason ....
The Assessing Officer must have tangible evidence linking the taxpayer to alleged income escape for valid reassessment under the Income Tax Act; mere suspicion is insufficient.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
